As fraud detection and prevention grow more complex in the wake of new trends shaping the digital fraud landscape, organizations are turning to advanced technologies to safeguard their data and investment.
A survey conducted by Association of Certified Fraud Examiners (ACFE), in collaboration with SAS reveals that 13 percent of organizations use artificial intelligence (AI) and machine learning to detect and deter fraud, and another 25 percent plan to adopt such technologies in the next year or two – a nearly 200 percent increase.
Biometrics is increasingly used to fight internal frauds. About one in four organizations (26 percent) use biometrics as part of their anti-fraud programs; another 16 percent foresee deploying biometrics by 2021, according to ACFE report.
More than half of organizations (55 percent) plan to increase their anti-fraud tech budgets over the next two years.
By 2021, nearly three-quarters of organizations (72 percent) are projected to use automated monitoring, exception reporting and anomaly detection. Similarly, about half of organizations anticipate employing predictive analytics/modeling (52 percent; up from 30 percent) and data visualization (47 percent; currently 35 percent).
“With the spike in occurrences of fraud in the Financial and Public sectors, it has become increasingly important to combat the menace with a combination of domain expertise and improved technology that can analyze volumes of data, detect anomalies or even trigger alerts on behavioral misconducts,” said Noshin Kagalwalla, VP and managing director, SAS India.
“Criminals find new ways to exploit systems each day, but advanced analytics, AI and Machine Learning will clearly be among the most-used technologies to combat fraud risk going forward,” Kagalwalla added.